Google Ads Bidding Strategy: The Complete 2025 Guide

I've audited over 200 Google Ads accounts at Bora Media Network, and I can predict what's wrong with most of them before even logging in.

The issue? Wrong bidding strategy for their situation.

I'll see a brand new account with 8 conversions using Target CPA (spoiler: it won't work). Or an established account with 300 conversions per month still using Manual CPC (they're leaving money on the table).

Here's the truth: Your bidding strategy is one of the biggest levers you have in Google Ads. Get it right, and you'll scale profitably. Get it wrong, and you'll burn through budget wondering why performance is stuck.

This guide will show you exactly which bidding strategy to use based on where you are right now—not where Google says you should be.

What Is Bidding in Google Ads?

Let's start with the basics.

Every time someone searches on Google, an auction happens in milliseconds. Advertisers bid for the chance to show their ads. The winners get displayed. The losers don't.

But it's not just about who bids highest.

Google considers:

• Your bid amount
• Your ad quality and relevance (Quality Score)
• Your expected click-through rate
• Your landing page experience
• Ad extensions and format

This is called Ad Rank, and it determines if and where your ad shows.

Your bidding strategy tells Google how to bid in these auctions. You can control it yourself (manual bidding) or let Google's algorithm handle it (automated bidding).

Before You Touch Bidding Strategy

Here's what I tell every client: Bidding strategy won't fix a broken account.

Before you optimize bidding, make sure you have:

• ✅ Conversion tracking set up correctly - Not just clicks or form views—actual conversions
• ✅ Decent account structure - Campaigns organized by intent or product type
• ✅ Solid ad copy - Responsive Search Ads with multiple strong variations
• ✅ Landing pages that convert - Message match between ad and page

If these aren't in place, fixing your bidding strategy is like putting premium gas in a car with a broken engine.

The Two Bidding Worlds: Manual vs. Automated

Manual Bidding: You Control Every Bid

How it works: You set maximum cost-per-click (CPC) bids at the keyword, ad group, or campaign level. Google won't bid higher than your max.

Types:

• Manual CPC: You set bids, Google doesn't adjust
• Enhanced CPC (eCPC): You set bids, Google adjusts up/down based on conversion likelihood

When to use:

• Brand new accounts (0-30 conversions per month)
• Extremely low budgets (<$500/month)
• You need maximum control for specific reasons

The reality: Manual bidding is dying. Unless you have a specific reason to use it, automated bidding will outperform you 90% of the time once you have data.

Automated Bidding: Google's AI Takes Over

How it works: Google's machine learning analyzes thousands of signals in real-time (device, location, time of day, search history, user behavior) and sets bids automatically to hit your goals.

Why it's powerful: Google has more data than you'll ever have. It can predict conversion likelihood better than any human.

When to use: Once you have 30+ conversions per month in a campaign, automated bidding will almost always outperform manual.

The 7 Automated Bidding Strategies Explained

Here's every automated strategy, what it does, and when to actually use it.

1. Target CPA (Cost Per Acquisition)

What it does: You tell Google your target cost per conversion. It bids to get you as many conversions as possible at or below that CPA.

Example: "I want leads at $50 each. Google, optimize to hit that target."

When to use:

• You have 30+ conversions per month
• Efficiency matters more than volume
• You need predictable, controlled costs
• B2B lead generation with clear target CPA

2. Target ROAS (Return on Ad Spend)

What it does: You set a target return on ad spend percentage. Google bids to maximize conversion value while hitting your ROAS target.

Example: "For every $1 I spend, I want $4 back. Google, optimize for 400% ROAS."

When to use:

• Ecommerce with variable order values
• You're tracking revenue/conversion value accurately
• You have 50+ conversions per month
• ROAS is your primary KPI

3. Maximize Conversions

What it does: Google spends your entire budget trying to get as many conversions as possible, regardless of cost.

When to use:

• You have budget you can't seem to spend
• Volume matters more than efficiency
• You're well below your target CPA and want to scale
• Lead generation businesses with strong backend sales processes

Warning: This strategy WILL spend your money. It prioritizes volume. If you set a $10K budget, expect it to spend $10K. CPA will rise if necessary to hit volume.

4. Maximize Conversion Value

What it does: Like Maximize Conversions, but prioritizes high-value conversions over volume.

When to use:

• Ecommerce with variable order values
• You want to attract higher-spending customers
• Budget isn't super constrained
• Google Shopping campaigns

5. Maximize Clicks

What it does: Google bids to get you as many clicks as possible within your budget.

When to use:

• Brand new accounts (getting data fast)
• You're promoting content/awareness (not conversion-focused)
• Your conversion rate is incredibly strong
• Testing new markets/keywords

Warning: Maximize Clicks doesn't care about conversions. It'll drive traffic that might convert, but the goal is clicks, not outcomes.

6. Target Impression Share

What it does: Google bids to show your ad a certain percentage of the time, in a specific position (top of page, absolute top, anywhere on page).

Example: "I want to show up 90% of the time at the absolute top of search results."

When to use:

• Brand campaigns (you want to dominate your brand terms)
• High-intent, proven keywords where you NEED visibility
• Your conversion rate is strong and you're confident in profitability
• Competitive conquesting

7. Manual CPC with Enhanced CPC

What it does: You set bids manually, but Google adjusts them up or down by up to 30% based on conversion likelihood.

When to use:

• You want more control than full automation but some algorithmic help
• Transitioning from Manual to full automation
• Very niche industries where algorithm struggles

Reality check: Enhanced CPC is kind of in no-man's land. You're better off going full manual or full automated in most cases.

The Bora Media Bidding Strategy Framework

Here's our exact decision tree for choosing bidding strategies:

Stage 1: Brand New Account (0-30 Conversions)

Use: Manual CPC or Maximize Clicks

Why: Not enough data for automated bidding to work effectively.

Action plan:

1. Start with Manual CPC or Maximize Clicks
2. Set bids based on keyword research and competitor analysis
3. Monitor closely, adjust weekly
4. Transition once you hit 30+ conversions/month

Timeline: Typically 1-3 months depending on budget

Stage 2: Early Data (30-50 Conversions/Month)

Use: Target CPA (for lead gen) or Maximize Conversions (for scaling)

Why: Enough data for algorithm to start learning, but not fully optimized yet.

Action plan:

1. Switch to Target CPA
2. Set initial target 10-20% higher than current average
3. Let it learn for 2-3 weeks
4. Gradually lower target if performance allows

Timeline: 2-4 months of optimization

Stage 3: Established Performance (50+ Conversions/Month)

Use: Target CPA or Target ROAS (depending on your business model)

Why: Algorithm has sufficient data to optimize effectively.

Action plan:

1. Choose Target CPA (if all conversions are equal value) or Target ROAS (if values vary)
2. Set realistic targets based on historical performance
3. Review monthly, adjust targets based on business goals
4. Add Maximize Conversion Value for specific high-value campaigns if needed

Stage 4: Scaling Mode (100+ Conversions/Month, Proven Profitability)

Use: Maximize Conversions or Maximize Conversion Value

Why: You've proven the model works. Now it's time to scale volume.

Action plan:

1. Ensure backend systems can handle increased volume
2. Switch high-performing campaigns to Maximize Conversions/Value
3. Keep some campaigns on Target CPA/ROAS as a control
4. Monitor quality closely—volume shouldn't come at the expense of fit

The Ultimate Bidding Strategy Cheat Sheet

Here's the quickest reference guide:

Advanced Tactics: Going Beyond Basic Strategy Selection

1. Portfolio Bid Strategies

What it is: Apply one bidding strategy across multiple campaigns.

Why it matters: Gives Google more data to work with. Campaigns can share learnings.

When to use:

• Multiple campaigns targeting similar audiences/goals
• You want consistent CPA/ROAS across campaigns
• Campaigns individually don't have enough volume

2. Seasonality Adjustments

What it is: Tell Google to expect higher or lower conversion rates during specific periods.

When to use:

• Black Friday/Cyber Monday
• Holiday seasons
• Tax season (for relevant businesses)
• Back to school

Why it matters: Without this, algorithm might underbid during high-converting periods and waste budget during low-converting times.

3. Layering Strategies by Campaign Type

Don't use the same strategy everywhere.

Each campaign has a different job. Give each the right strategy.

Troubleshooting: When Bidding Strategy Isn't Working

Problem 1: "I Switched to Target CPA and Performance Tanked"

Likely causes:

• Target CPA set too aggressively (Google can't hit it)
• Not enough conversion data (<30/month)
• Conversion tracking issues
• Didn't give it enough time to learn (need 2-3 weeks minimum)

Fixes:

• Raise your Target CPA by 20-30% temporarily
• Verify conversion tracking is accurate
• Give it more time (resist urge to change daily)
• If still failing after 3-4 weeks, revert to previous strategy

Problem 2: "Maximize Conversions Is Spending My Budget But CPA Is Too High"

Likely cause: That's exactly what it's designed to do. Maximize Conversions prioritizes volume.

Fixes:

• Switch to Target CPA if you need cost control
• Lower your daily budget (Google will max out at lower volume)
• Accept that CPA will be higher at higher volume (law of diminishing returns)

Problem 3: "Target ROAS Shows 'Learning' for Weeks"

Likely causes:

• Not enough conversion value data
• Budget too low for algorithm to gather data quickly
• Target ROAS set too high
• Frequent changes preventing learning

Fixes:

• Ensure you have 50+ conversions/month with tracked values
• Lower target ROAS temporarily to give algorithm room
• Stop making changes for 2-3 weeks
• Consider switching to Target CPA temporarily to build data

How to Transition Between Bidding Strategies

Don't just flip a switch. Here's how to transition smoothly:

From Manual CPC to Target CPA

1. Note your current average CPA
2. Set Target CPA 15-20% higher than current average
3. Switch and monitor daily for first week
4. After 2 weeks, gradually lower target if performance allows
5. Give it 30 days before making major changes

From Target CPA to Maximize Conversions

1. Ensure you're consistently hitting your Target CPA
2. Verify backend systems can handle more volume
3. Switch to Maximize Conversions
4. Expect CPA to rise 10-30% but volume to increase significantly
5. Monitor quality closely

Common Mistakes That Kill Bidding Performance

Mistake #1: Changing Strategy Too Often

The problem: Algorithm needs time to learn. Switching every week resets the learning.

The fix: Give any strategy 2-3 weeks minimum before changing. Preferably 4-6 weeks for full evaluation.

Mistake #2: Setting Unrealistic Targets

The problem: Target CPA of $30 when market average is $80. Google can't hit it.

The fix: Start with realistic targets based on current performance. Optimize down gradually.

Mistake #3: Not Having Enough Conversion Data

The problem: Trying to use Target ROAS with 15 conversions/month. Algorithm has nothing to work with.

The fix: Use Manual or Maximize Clicks until you hit 30+ conversions/month.

Mistake #4: Ignoring Quality Score

The problem: Focusing only on bidding while ignoring ad relevance, CTR, landing page experience.

The fix: Bidding strategy amplifies your account. If the foundation is weak, no bidding strategy will save you.

The Bora Media Bidding Philosophy

After managing millions in Google Ads spend, here's what we've learned:

1. Automated bidding beats manual 90% of the time (once you have data)
2. The right strategy depends on your stage, not what's "best" in general
3. Give strategies time to work before changing (2-3 weeks minimum)
4. Feed the algorithm good data (accurate conversion tracking is everything)
5. Don't fight the auction (trying to dominate 100% impression share gets expensive)
6. Test everything (what works for others might not work for you)

Most importantly: Bidding strategy is powerful, but it won't fix a fundamentally broken account. Get the foundation right first.

Getting Started Today

Here's your action plan:

The Bottom Line

Your bidding strategy is one of the most powerful levers in Google Ads.

But it's not magic. It won't fix bad ads, terrible landing pages, or broken conversion tracking.

Use the right strategy for your stage. Give it time to work. Feed it good data. And remember: the goal isn't to have the "best" bidding strategy—it's to have the right one for where you are right now.